Sandisk Cruzer Micro 2GB - U3 LaunchPad never completes loading

I bought my USB drive at Staples in 2009, and it came pre-loaded with U3 Launchpad.  I last used it about 2 months ago.

Yesterday I plugged it in, and the Windows download icon (sand-clock) flashed on and off continuously. The rundll files appeared & disappeared in Task Manager.  My system (XPSP3) lists the device in Device Mgr with no error symbols, but the software has somehow become corrupted.

I did a recovery with PhotoRec ( a nice program), but the results are encrypted.  I really just want to use the USB, even if I’ve lost my backup data, and need to reformat it.

Is it possible to reformat the USB after all this?  I never had a problem with it until now.

Any ideas welcome.